TDS On Rent by bank while paying rent To owner on behalf of its employee(tenant)

Mr X Is an employee of bank and is eligible to get a reimbursement from bank of house rent paid by their employee.
in FY 19-20 Mr X(tenant) has an agreement with Mr Y( owner of the property)to pay rent rs. 21,500 PM.

Bank wants to deduct TDS of Mr y while paying Rent of rs. 21,500

Mr. Y does not want TDS to be deducted.(mutual understanding btw X and Y)

A:

1) Can bank deduct tax(TDS)
2) Who's TDS is to be deducted and by Whom
3)If bank is not eligible to deduct TDS then what remedy is available for Mr. X
4) What tax planning can be done by Mr. X to save TDS
5)What can Mr. x And Mr. y do if TDS is deducted

B : what Can Mr.Y to avoid tds in future, should Mr.Y deny giving house on rent to bank employees to avoid tds in future.
Replies (4)
Quick Summary
This discussion explores the complexities of Tax Deducted at Source (TDS) when a bank pays rent on behalf of its employee (tenant) to a property owner. It clarifies who is responsible for TDS deduction, whether the bank can deduct TDS on behalf of the employee, and when TDS is actually applicable under Section 194-IB, particularly concerning the rent threshold. The conversation also touches upon remedies and tax planning strategies for both the employee and the property owner if TDS is deducted or to avoid it in the future.

TDS not applicable. Also bank is wrong. Banker cant deduct TDS behalf of employees.

So,
Total questions are lack of need (not required)...
Yes no need to deduct...TDS
if the X is not liable to audit his book
he is not required deduct to tds
individual who not liable to audit his..under sec 44ab. tax has to be deducted at source only if the amount of such rent exceeds rupees 50000
for month or part of a month during the previous year...refer sec 194-IB
What can a Mr y do avoid tds. ...
Here TDS not applicable and no questions for deduction...

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